Have you ever wondered how to find an investor? Here are a few basic principles that will help you find an investor.
As a general rule, both venture capitalists and angel investors want to know that you know just how your business is going to succeed. Your business plan is a persuasive tool that enhances your credibility and desirability as an investment.
1. Shop the internet
The internet is full of potential for finding investors. There are many websites built to help entrepreneurs network with investors. Whether targeting angel investors, debt loans or otherwise, there is a site to help.
For example, Lendio.com caters to small business owners seeking loans. You can enter some basic information, create a user account, and then see what matches the website will come up with for your business. You can even get up to 4 matches a month for free. There are two other paid options which give you unlimited matching and other services.
The point is this: the internet should be one of your primary tools for finding potential investors. However, the internet may not be sufficient for all types of funding.
This leads us to our second principle:
There is no real replacement for business networking. Meeting people through trade shows, conventions, local business organizations and other functions makes it possible to take advantage of opportunities within your industry. You may not meet already know a venture capitalist or angel investor, but if you know someone who does, their recommendation may put you in front of a potential investor that you would otherwise never meet.
This unpredictable nature of opportunities leads to our final principle:
3. Have a plan
No, perhaps not all funding requires a business plan (after all, sometimes close friends or family invest simply out of love) but any bid for large amounts of funding will likely be rejected without a business plan.